Bitcoin Bull Run Creating Over 1,500 Millionaire Wallets Daily, Kaiko Research Says

Updated: 12 March 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

The Bitcoin rally is boosting more than 1,500 BTC wallets past the million dollar mark on a daily basis, Kaiko Research says

But that is still a substantially lower number than the more than 4,000 wallets that were reaching millionaire status daily during the previous bull run in 2021, and two thousand hitting $10 million, Kaiko said in a March 11 report.

There are a number of potential reasons why whales are slow to return to the market this time, including a lack of new capital entering the crypto space ”in full force,” and large ”whales” either taking profit with BTC at new all-time highs or storing their holdings with custodians, rather than personal wallets, it said.

“In 2021, there was a huge influx in capital as all manner of bull sought to benefit from the crypto hype,” it said. ”This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.”

So far, this year’s record for the number of BTC millionaire wallets created in a day stands at 1,691 on Mar. 1.

Bitcoin Demand Strong Despite Higher Sell Orders

The Bitcoin price has been on a strong upward trajectory ever since spot Bitcoin ETFs (exchange-traded funds) launched in the US on Jan. 11, and has surged 50% in the last month, according to CoinMarketCap data.

Following BTC’s positive movement over the last week, which also saw the leading crypto break $72k for the first time for a new all-time high, there has been a large amount of liquidations in the derivative markets, the report said.

Amid last week's volatility, derivative markets saw a significant amount of liquidations.#BTC open interest rose by nearly $2bn on March 4, hitting a multi-year high of $15bn before crashing the next day. pic.twitter.com/ssuXPbmVkp

— Kaiko (@KaikoData) March 11, 2024

Open interest for Bitcoin perpetual contracts also rose by almost $2 billion on Mar. 4 to hit a multi-year high of $15 billion. However, it declined back to $1.4 billion the day after.

Following the liquidations, bullish demand for BTC still seems to be strong, as funding rates remain high even after a slight drop, said the report.

🚀 #BTC market depth, measuring the quantity of bids and asks on BTC order books, has been on a steady upwards trend over the past few months, hitting more than $600mn last week. pic.twitter.com/Sq2UTITGk9

— Kaiko (@KaikoData) March 11, 2024

However, this demand is clouded by a strong “mismatch” between bid and ask depth. Currently, the number of sell orders “far surpasses” the number of buy orders, added the firm.